You can arrest your company’s high employee attrition rate with a humane gesture: get group insurance for your staff.
India is fast developing into a start-up destination for the world. Stories of people quitting successful corporate careers to launch their own companies are frequently heard of these days. The drive to internalise your dream and launch it via an enterprise is a rare quality, but many people in the country seemingly possess it!
But while many of these start-ups are able to get off the ground and do well after a while, many more are biting the dust. The biggest problems that plague new businesses involve not enough revenues to pay high salaries, and staff attrition. Many youngsters who work in start-ups do so because they want to gain some experience before they venture into bigger companies. But there are many who are always on the lookout for a higher salary and good benefits so that they can stay on at the company.
Many new companies struggle with staff attrition. Good talent is hard to come by at lower pay, and even more difficult to retain. It is also not possible to offer the kind of employee benefits that bigger corporations do. However, as a business owner, you can quite easily offer one important employee benefit: a group life insurance policy.
What is group life insurance?
As the name suggests, it is a life insurance policy by which a group of people is covered under one term life insurance plan. This group is often a group of people working in the same company. Unlike an individual life insurance plan, the group life insurance policy extends the benefits of a high sum assured amount for all the members covered under the plan.Employees receiving the benefit of a group life insurance policy are less likely to quit the company to work elsewhere. Knowing that their company can protect their loved ones’ interests in their absence is a powerful motivator to work long and hard for the business! Businesses that offer employee group life insurance find that staff attrition rates are lower and employees are more inspired to give their best for the company.
How does it work?
As the business owner, you pay the premiums towards the group insurance plan. In case of the unfortunate demise of any of the group members while they are still employed with the company, the plan’s benefits pass on to the deceased’s family members. The policy is just a single master policy issued in the name of the employee to which new names may be added periodically.The coverage is ceased the moment the employee leaves the company or passes away.
